Talking Down the Firm: Short-Term Market Manipulation and Optimal Management Compensation
AbstractThis paper analyzes the optimal use of short and long-term share prices in management incentive contracts. A key innovation of our model is that the short-term share price is determined even before the manager has made her effort choice and therefore cannot be informative in the standard principl-agent sense.
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Bibliographic InfoPaper provided by Australian National University - Department of Economics in its series Papers with number 297.
Length: 14 pages
Date of creation: 1996
Date of revision:
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Postal: THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA.
Web page: http://economics.anu.edu.au/economics.htm
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Other versions of this item:
- Garvey, Gerald T. & Grant, Simon & King, Stephen P., 1998. "Talking down the firm: Short-term market manipulation and optimal management compensation," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 555-570, September.
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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